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ATF under GST will ensure level playing field for domestic airlines: Prabhu

He said input costs should be competitive for any sector and the ministry has been of the strong view that the fuel should be brought under the GST regime

Press Trust of India  |  New Delhi 

Commerce and Industry Minister Suresh Prabhu represented India at the talks
Commerce and Industry Minister Suresh Prabhu. Airlines could expect an annual relief of up to Rs 5,000 crore by way of input tax credit if ATF is brought under GST

Aviation turbine fuel (ATF) should be brought under the (GST) regime as it will ensure a level playing field for the domestic industry, Civil Aviation said.

He said input costs should be competitive for any sector and the ministry has been of the strong view that the fuel should be brought under the GST regime.

Different rates of taxes in states pushes the price of ATF, he said.

"Each state has a different Due to this, the refuelling (for airlines) cost completely changes. We feel that it should be done. I hope the takes a call on that and we are pursuing this with the council continuously.

"We will work on it that aviation fuel should also be brought under GST for predictability and for ensuring level playing field," the told in an interview.

Airlines have been demanding inclusion of ATF in the new indirect regime.

Airlines could expect an annual relief of up to Rs 5,000 crore by way of input tax credit if ATF is brought under GST.

The move could cushion them from the burden of increased prices, besides providing relief to customers.

First Published: Sun, April 07 2019. 11:35 IST
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